For the September 2016 quarter, the company recorded net sales of $1,618 million compared to $1,196 million in the same prior year period. The year-over-year increase was primarily attributed to net sales from the acquisition of AVINTIV, Inc.
For fiscal year 2016, the company recorded net sales of $6,489 million compared to $4,881 million in fiscal year 2015. The year-over-year increase was primarily attributed to the acquisition of Avintiv partially offset by a $237 million decline in selling prices due to the pass-through of lower resin prices and a $61 million negative impact from foreign currency changes.
For the September 2016 quarter, the company had operating income of $151 million compared to $107 million in the same prior year quarter. The 41% year-over-year increase was primarily attributed to the acquisition of Avintiv.
For fiscal year 2016, the company had operating income of $581 million compared to $408 million in the same prior fiscal year.
The ratio of net debt of $5,432 million to adjusted EBITDA of $1,220 million for the fiscal year ended October 1, 2016 was 4.5, representing a 0.6 improvement (reduction) since the close of the Avintiv acquisition a year ago and exceeding the company’s goal of 0.5 reduction for the year.
Berry Plastics’ adjusted free cash flow for the September 2016 quarter was $231 million, an increase of 22%, compared to $189 million in the prior year period. Cash from operations increased to $857 million in fiscal year 2016, an increase of 35% compared to $637 million in fiscal year 2015. The company’s adjusted free cash flow for fiscal year 2016 was $517 million compared to $436 million in fiscal year 2015.
“Berry had a strong fourth fiscal quarter and full year as we exceeded our guidance for both free cash flow and operating EBITDA. We generated solid adjusted free cash flow of $231 million in the quarter, bringing our adjusted free cash flow for the 2016 fiscal year to a record $517 million,” said Tom Salmon, president and COO of Berry Plastics.
“Looking forward to next year we will continue our focus on reducing our net debt to adjusted EBITDA ratio by 0.5 or greater to below 4 on or before the end of fiscal 2017. Additionally we are anticipating and excited for the close of our acquisition of AEP and believe together with our Engineered Materials Division, will create an impressive packaging film producer serving the North American market,” added Salmon.